Morocco’s state-owned chemical company OCP is to invest $7 billion in an ammonia plant that uses green hydrogen from renewable fuels to achieve greater production efficiency and very low carbon emissions, with a view to making a greater commitment to the environment.
Morocco has a very relevant position in terms of chemical products and fertilisers in the global market. In fact, the Moroccan kingdom is among the five largest exporters of fertilisers in the world due to its important phosphate mines, the main mineral from which they are created. The war in Ukraine is having a major impact on this sector and a greater diversification of export sources has been sought in view of the lack of fertilisers due to the current crisis in products and raw materials, in addition to the sharp rise in world prices. Russia has been dominating the fertiliser market, but, given the situation caused by the invasion of the Ukrainian country, other options had to be sought, bearing in mind that Cna is the largest exporter and is leaving a large part of its production for the local market.
In this scenario, Morocco burst onto the scene as an important producer, and the state-owned company OCP is its stronghold. This chemical and fertiliser manufacturing company for the countryside spent $2 billion on raw materials last year due to rising costs generated by the war in Ukraine. Morocco’s importance has grown due to the devastating effects of the Ukrainian war and the Moroccan presence in the market is very important. In addition, OCP is a major player in this regard, and also stands out for its promotion of renewable, environmentally friendly energy, as evidenced by the investment in the new ammonia plant based on green hydrogen from renewable fuels.
PHOTO/FILE – Phosphate fertiliser factory in Morocco
OCP announced a deal to buy ammonia from the US this year to boost its industry and meet a higher level of global supply. As reported by Business Insider, OCP ha longer-term goal of boosting its local supply chain, in part by building a facility in Tarfaya in southern Morocco. The company intends to use hydrogen created by solar- and wind-powered electrolysis as a feedstock to create ammonia, as part of a $13 billion strategy it announced in December to move into renewable and environmentally friendly energy, as Business Insider noted.
Morocco’s commitment to renewables is clear, with the government planning to increase the share of renewable energy to 52% of total installed power capacity from 38% by 2030. The Kingdom will devote a share of renewable energy to 70% by 2040, rising to 80% by 2050. In this sense, the characteristics of the Moroccan kingdom are very beneficial for the development of this industry thanks to the large source of sunlight it enjoys, the strong winds in certain parts of the territory and the long length of coastline it possesses.
Morocco achieves record revenue from phosphate sales in 2022
On th oher hand, better water management resources are also being sought through the desalination of seawater, in order to alleviate the severe effects of the nation’s long-standing drought. A tender process to increase desalination capacity in Safi and Jorf Lasfar on the Atlantic will begin early next year, according to the state-owned OCP, which has stated its intention to use only desalinated water for industrial activities by 2027.
Its project in Tarfaya includes a desalination plant powered by renewable energy with an annual capacity of 60 million cubic metres to serve industrial complexes.
REUTERS/YOUSSEF BOUDLAL – Phosphate mine at the Boucraa factory of the Moroccan National Phosphate Company (OCP) in the southern provinces of Boucraa
Hydrocarbon sector
Although Morocco is strongly committed to renewable energies, the Moroccan state is also developing its gas and oil sector, as several fields have been discovered in the country with good production prospects and are being oeraed by major companies such as the British companies Sound Energy and Chariot.
The Moroccan kingdom is continuing to explore for natural gas in order to increase its supply and become a major producer in the region, as until now it has been in the shadow of neighbouring and political rival Algeria, the Maghreb’s gas-producing giant. Studies carried out over the years have shown that the Moroccan subsoil is rich in gas, and the aim is to take advantage of this for national economic development. “Morocco has several onshore and offshore sedimentary basins whose geology has allowed the genesis of different petroleum systems that could potentially be favourable to the accumulation of gas deposits,” explained Abdellah Mouttaqi, secretary general of the National Office of Hydrocarbons and Mines (ONHTM). The areas of Tendrara, Larache, Gharb, Kenitra, Essaouira, Guersif, Zag, Boudnib and Missour are examples within the development plan of the Moroccan gas industry.
PHOTO/FILE – Ferilisrs
This exponential leap in Moroccan gas production would make it possible to cover 40% of domestic consumption, according to the Moroccan Minister of Energy Transition and Sustainable Development, Leila Benali. The challenge is that by 2050 the country’s energy consumption will go from 90% imported energy from abroad to 80% local production, and the new gas discoveries will contribute to this, thus avoiding the situation of energy dependence that the North African country has suffered for years.
Raúl Redondo
